Farmers, Ranchers Benefit From American Taxpayer Relief Act of 2012

The financial news cycles were dominated by the prospect of the country going over the dreaded “fiscal cliff” as the New Year approached. This abyss, as it were, involved automatic spending cuts and tax increases.

The estate tax would have been increased if no deal was reached to avoid going over this precipice. The maximum rate of the tax would’ve been 55%, and the exclusion would have been just $1 million.

There is an impression out there about the estate tax. Some people view it as something that only the very wealthy have to concern themselves with. However, many individuals would say that $1 million in total assets does not make you a member of the jet set.

This is especially true for ranchers and farmers. Sometimes there is land that has been in the family for generations. In many cases this acreage was purchased when prices were much lower than they are today.

So, you could be in possession of some valuable real estate without really having a great deal of cash on hand.

A lot of people who are owners of farms and ranches would have been impacted by a decrease in the estate tax exclusion down to just $1 million.

As a result of the enactment of the American Taxpayer Relief Act of 2012 we have a $5.25 million exclusion this year rather than a $1 million exclusion, so there is a decent cushion there for farming and ranching families across the country.

It should be noted that this exclusion amount is considered to be permanent with ongoing adjustments for inflation, so we should have at least $5.25 million to work with into the foreseeable future.

Download our free estate planning checklist

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Where We Are

Office Hours

Monday

9:00 AM - 5:30 PM

Tuesday

9:00 AM - 5:30 PM

Wednesday

9:00 AM - 5:30 PM

Thursday

9:00 AM - 5:30 PM

Friday

9:00 AM - 5:30 PM

The information on this Oklahoma Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.